Burger King 2011 Annual Report Download - page 110

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Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
International Pension Plans
Successor Predecessor
2011
October 19,
2010 to
December 31,
2010
July 1,
2010 to
October 18,
2010
Fiscal
2010
Fiscal
2009
Discount rate as of year-end 4.82% 5.35% 4.98% 5.17% 6.00%
Range of compensation rate increase 3.44% 3.80% 3.52% 3.71% 3.53%
The discount rate used in the calculation of the benefit obligation at December 31, 2011 for the U.S. Plans is derived from a yield curve comprised of the
yields of approximately 540 market-weighted corporate bonds, rated AA on average by Moody’s, Standard & Poors, and Fitch, matched against the cash flows of
the U.S. Plans. The discount rate used in the calculation of the benefit obligation for the U.S. Plans in prior periods was derived from a yield curve comprised of
the yields of approximately 360 equally-weighted corporate bonds, rated AA or better by Moody’s or Standard & Poors, matched against the cash flows of the
U.S. Plans.
The weighted-average assumptions used in computing the net periodic benefit cost of the U.S. Pension Plans and the U.S. Retiree Medical Plan are as
follows:
U.S. Pension Plans U.S. Retiree Medical Plan
Successor Predecessor Successor Predecessor
2011
October 19,
2010 to
December 31,
2010
July 1,
2010 to
October 18,
2010
Fiscal
2010
Fiscal
2009 2011
October 19,
2010 to
December 31,
2010
July 1,
2010 to
October 18,
2010
Fiscal
2010
Fiscal
2009
Discount rate 5.35% 5.06% 5.16% 6.37% 6.10% 5.35% 5.06% 5.16% 6.37% 6.10%
Expected long-term
rate of return on
plan assets 7.50% 7.50% 7.50% 7.50% 8.25% N/A N/A N/A N/A N/A
International Pension Plans
Successor Predecessor
2011
October 19,
2010 to
December 31,
2010
July 1,
2010 to
October 18,
2010
Fiscal
2010
Fiscal
2009
Discount rate 5.38% 5.15% 5.09% 6.07% 5.89%
Range of compensation rate increase 3.79% 3.66% 3.58% 3.57% 3.88%
Expected long-term rate of return on plan assets 6.49% 6.10% 6.37% 6.42% 6.51%
The expected long-term rate of return on plan assets is determined by expected future returns on the asset categories in target investment allocation. These
expected returns are based on historical returns for each asset’s category adjusted for an assessment of current market conditions.
109
Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠